Boart Longyear, IPC Information, Applied Systems, Orthofix talk surfaces; Dura trades lower

By Sara Rosenberg

New York, Sept. 7 - Boart Longyear Co. came out with spread guidance on its billion-dollar-plus credit facility ahead of next week's launch, and IPC Information Systems LLC, Applied Systems Inc. and Orthofix International NV released price talk on their deals as bank meetings for these three transactions took place during the Thursday session.

In secondary happenings, Dura Automotive Systems Inc.'s second-lien term loan took a bit of a tumble during Thursday's session as worries over the loan's lien started to infiltrate the market.

Boart Longyear started floating price talk on its proposed $1.395 billion credit facility as the deal is getting ready to launch with a bank meeting on Tuesday afternoon, according to a syndicate document.

The $125 million five-year revolver, $320 million 18-month first-lien term loan and $650 million six-year first-lien term loan B are all being talked at Libor plus 275 to 300 basis points, the document said.

Meanwhile, the $300 million seven-year second-lien term loan is being talked at Libor plus 650 basis points, the document added.

Credit Suisse is bookrunner on the deal that will be used to help fund the acquisition of a majority interest in Boart Longyear by an investor group led by Macquarie Bank Ltd.

Macquarie's investor group will own a 51% stake in the business, while existing sponsors Advent International, Bain Capital and management will roll over $200-plus million and retain a 49% stake in the company.

Concurrently, Boart Longyear is acquiring two businesses, Northwest Drilling and Drillcorp, increasing Sept. 30 last-12-month EBITDA to $225 million.

Leverage will be around 4.4 times through the first lien and around 5.7 times through the second lien.

Pro forma for the paydown of the 18-month facility, leverage would drop to 2.8 times through the first lien and 4.2 times through the second lien.

Boart Longyear is a Salt Lake City-based drilling-services provider.

IPC Information sets talk

IPC Information announced opening pricing levels on its $635 million credit facility during a bank meeting Thursday that was held at the LeParker Meridien in New York with 9:30 a.m. ET registration and a 10 a.m. ET start, according to a market source.

The $50 million six-year revolver (Ba3/B+) and $415 million seven-year first-lien term loan (Ba3/B+) were both launched with price talk in the Libor plus 275 basis points area, the source said.

As for the $170 million eight-year second-lien term loan (Caa1/B-), that was launched with price talk in the Libor plus 675 basis points area and carries call protection of 102 in year one and 101 in year two, the source continued.

"The bank meeting had exceptional attendance with over 100 persons present. Commitments started coming in last week, so [there is] very strong momentum," the source added.

Goldman Sachs, JPMorgan and Morgan Stanley are the lead banks on the deal, with Goldman the left lead.

Proceeds will be used to help fund Silver Lake Partners' leveraged buyout of the company for about $800 million from GS Capital Partners.

IPC is a New York-based provider of mission-critical communications solutions and services.

Applied Systems guidance

Applied Systems launched its proposed $250 million credit facility on Thursday with spread guidance of Libor plus 275 to 300 basis points on all tranches, according to a market source.

Tranching on the deal is comprised of a $220 million seven-year first-lien term loan B and a $30 million six-year revolver.

Credit Suisse and JPMorgan are the lead banks on the credit facility, with Credit Suisse the left lead.

Proceeds will be used to help fund the leveraged buyout of Applied Systems by Bain Capital Partners from Vista Equity Partners, LLC. Chairman and chief executive officer James P. Kellner will remain a significant investor in the company.

In addition to the credit facility, the company will be getting $165 million of eight-year mezzanine debt for acquisition financing.

Applied Systems is a University Park, Ill., provider of insurance agency and broker management system software.

Orthofix price talk

Also on the price talk front, Orthofix launched its $330 million seven-year term loan B during market hours with opening price talk set at Libor plus 200 basis points, according to a market source.

In a conference call held in August, company officials had said that they expected the term loan to carry an interest rate somewhere in the range of Libor plus 200 to 250 basis points.

Wachovia and Citigroup are the lead banks on the $375 million credit facility (Ba3/BB-) that also includes a $45 million six-year revolver.

Proceeds will be used to help fund the company's $333 million cash acquisition of Blackstone Medical, Inc.

Looking down the road, the company hopes to use some lower cost equity financing sometime within the next 12 months, which could include a convertible financing or, depending on market reaction, equity in the secondary.

The transaction is anticipated to be completed as early as September, subject to the receipt of regulatory approvals, consummation of financing and other customary conditions to closing.

Orthofix is a Curacao, the Netherlands-based diversified orthopedic products company. Blackstone Medical is a Springfield, Mass.-based international spine product company.

Dura second lien slides lower

Switching over to trading, Dura Automotive's second-lien term loan headed lower on investor concerns over the perfection of the lien on the loan, according to a trader.

The second-lien paper closed the day quoted right around the 98 context, down about a point and a half from previous levels, the trader said.

Dura Automotive is a Rochester Hills, Mich.-based designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the automotive industry.

Roofing Supply closes

The Sterling Group, LP completed its acquisition of a majority interest in the entities comprising the Roofing Supply Group, according to a news release.

To help fund the buyout, Roofing Supply got a new $235 million credit facility consisting of a $50 million revolver and a $185 million first-lien term loan B with an interest rate of Libor plus 325 basis points.

During syndication, pricing on the term loan B was revised first from Libor plus 250 to 275 basis points and then from Libor plus 300 basis points.

In addition, during syndication, an $85 million second-lien term loan that was being talked at Libor plus 700 basis points after flexing up from original talk at launch of Libor plus 600 to 650 basis points, was eliminated from the capital structure.

To replace the lost funds, the company got a $65 million senior subordinated mezzanine facility, drew $10 million under the revolver tranche that was originally expected to be undrawn at close, and received an additional $10 million of cash equity from the sponsor.

JPMorgan and Goldman Sachs acted as the lead banks on the deal, with JPMorgan the left lead.

Roofing Supply is a Dallas-based wholesale distributor of roofing supplies and related materials.

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